HorizonBusinessFunding | Window Shopper |
8/13/2013 - 3:31 pm

If you are interested in a loan, there are various things you have to prove,
including collateral, the profitability of your business and the strength of
your business plan. If you can do these things, you may have a shot at
getting a loan. Alternately, you could apply for a merchant cash advance from
a company such as Horizon. They require no collateral or minimum credit
score, being based on monthly sales. If you have trouble getting a
traditional loan it might be an interesting option for you. Best of luck.

JGabriel | Community Moderator |
7/31/2013 - 10:47 am

In addition, SBA doesn&#39;t loan money directly to small business owners; instead, SBA can help facilitate a loan for you with a third party lender, guarantee a bond, or help you find venture capital. Here&#39;s what you need to know about SBA&#39;s role in the loan process.&nbsp;
Check this information out to learn about what you need when considering applying for a loan, including details about credit factors that are taken into consideration.&nbsp;

BMT | Window Shopper |
7/17/2013 - 8:30 am

All borrowing depends on what you can afford to pay back. Example: a $100,000
loan for 5 years at 10% interest would require your business to cash flow
some $2,125 per month to make the monthly payments. If your business does not
already generate that amount in free cash flow - then you cannot afford that
loan. It all comes down to what you can afford to pay.

Other business loans options are based on the financial asset being used. If
you have $100,000 in 60 day or less accounts receivables, then you could
factor those for up to 80% of their face amount. Or, if your business
receives say $10,000 a month in credit card payments from customers - then
you could factor that amount into say 6 months of those receipts or $60,000.

Lastly, some business loans not only focus on your cash flow but also your
collateral. Let's say that you want to purchase equipment with a value of
$50,000 but want a loan for $80,000. The lender may only provide that $50,000
- not the additional $30,000 and some will only provide 80% of that $50,000
requiring you put the other 20%.

BizResearcher | Window Shopper |
7/16/2013 - 2:46 pm

Probably not much. All loans, including SBA ones, require that you have a
detailed business plan, a good personal credit history, experience in your
chosen industry or a similar one, and a proven ability to repay the loan. If
you are considering starting a home-based business, they are very difficult
to finance. Your best bet is personal savings or borrowing from family and
friends.